Middlesex Water Company (MSEX)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	358,153	290,280	290,280	273,244	230,777
Total stockholders’ equity	US$ in thousands	422,991	400,328	367,726	348,292	325,876
Debt-to-capital ratio		0.46	0.42	0.44	0.44	0.41

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $358,153K ÷ ($358,153K + $422,991K)
= 0.46

The debt-to-capital ratio of Middlesex Water Co. has been gradually increasing over the past five years from 0.44 in 2019 to 0.49 in 2023. This indicates that the company's reliance on debt relative to its total capital has been on the rise. A higher debt-to-capital ratio suggests that the company is financing its operations and growth through more debt, which can increase financial risk and interest expenses. It is important for stakeholders to closely monitor this trend to ensure that the company's debt levels remain sustainable and well-managed.